Canadian Dollar Struggles Amid Diverging Policy Expectations

The Canadian dollar continued to struggle on Thursday, weighed down by widening interest rate spreads and diverging policy expectations from the Fed and BoC.

The US dollar was in a mixed state at the open but rallied against the JPY despite the BoJ's rate hike. The greenback found support due to the Fed's more hawkish stance on rates, which revived expectations of another increase before year-end.

Oil prices remained above $100/barrel, with WTI trading in a $99.39-$101.64 range and establishing its Asian low ahead of the New York open.